Deterministic Value

Kerosene's value in the system, not to be confused by its market value, is set deterministically by the protocol via

$X = \frac{C - D}{K}$

Where:

• X: the value of a single Kerosene token deposited in a Note as backing for DYAD

• C: the total USD value of all exogenous collateral in the protocol (TVL). Critically, this total does not include Kerosene itself

• D: the total supply of DYAD stablecoins

• K: the circulating supply of Kerosene tokens